Friday, May 26, 2023

Comprehensive Scrutiny of Non-Filers and Tax Evasion Cases

The income tax department has announced its plans for the current financial year, emphasizing the thorough scrutiny of certain cases. The focus will be on two main categories: cases where no return was furnished, and cases where specific instances of tax evasion were detected. The Central Board of Direct Taxes (CBDT) has listed these criteria as parameters for the compulsory selection of returns for complete scrutiny during the fiscal year 2023-24.

1. Cases with No Furnished Return

The income tax department will give special attention to cases where taxpayers have failed to furnish their returns. These are individuals or entities who have not complied with their obligation to file a tax return for the relevant assessment year. By conducting comprehensive scrutiny of these cases, the department aims to ensure that all taxpayers fulfill their legal responsibilities and contribute their fair share towards the nation's development.

2. Cases with Specific Instances of Tax Evasion

Another crucial focus area for the income tax department is cases in which specific instances of tax evasion have been detected. These instances may have been brought to the attention of the department through various means, such as information provided by law enforcement agencies. The CBDT has emphasized the significance of such information, recognizing it as a valuable resource for identifying potential tax evasion and ensuring compliance with tax regulations.

When both specific information pointing out tax evasion for the relevant assessment year and the return for that year are furnished by the taxpayer, the department will prioritize these cases for complete scrutiny. This indicates the department's commitment to thoroughly investigate instances where taxpayers may have intentionally or inadvertently evaded their tax liabilities.

By implementing these measures, the income tax department aims to strengthen its enforcement mechanisms and enhance tax compliance. Complete scrutiny of these selected cases will help uncover any potential tax irregularities, ensure fairness in the tax system, and maintain public trust in the integrity of the income tax department.

In conclusion, the income tax department's decision to prioritize search and survey cases, as well as instances of specific tax evasion, for complete scrutiny during the fiscal year 2023-24 reflects its dedication to promoting transparency, accountability, and fairness in the tax administration process.